Economy of Bosnia and Herzegovina
== Economy of Bosnia and Herzegovina ==
The economy of Bosnia and Herzegovina is classified as an upper-middle-income economy by the World Bank. The country has a transitional economy with limited market reforms. Bosnia and Herzegovina is a developing country and ranks 75th in the Human Development Index. The economy relies heavily on the export of metals, energy, textiles, and furniture, as well as on remittances and foreign aid.
History[edit | edit source]
The economy of Bosnia and Herzegovina has undergone significant changes since the Bosnian War (1992-1995). The war caused widespread destruction of infrastructure and industry, leading to a severe economic downturn. Post-war reconstruction efforts, supported by international aid, have helped to rebuild the economy. The country has made progress in transitioning from a centrally planned economy to a market-oriented one.
Sectors[edit | edit source]
Agriculture[edit | edit source]
Agriculture plays a significant role in the economy, employing a large portion of the population. The main agricultural products include wheat, corn, fruits, and vegetables. Livestock farming is also prevalent, with a focus on cattle, sheep, and poultry.
Industry[edit | edit source]
The industrial sector is diverse, with key industries including metal processing, wood processing, textiles, and automotive. The country has significant reserves of coal, iron ore, and bauxite, which support its metal processing industry. The energy sector is also important, with Bosnia and Herzegovina being a net exporter of electricity, primarily generated from hydropower.
Services[edit | edit source]
The services sector has been growing, particularly in areas such as banking, telecommunications, and tourism. The tourism industry has seen a steady increase in visitors, attracted by the country's natural beauty, historical sites, and cultural heritage.
Trade[edit | edit source]
Bosnia and Herzegovina's main trading partners are the European Union, particularly Germany, Italy, and Croatia. The country exports metals, machinery, and equipment, while importing machinery, chemicals, and fuels. The Central European Free Trade Agreement (CEFTA) and the Stabilisation and Association Agreement (SAA) with the EU have facilitated trade and economic integration.
Challenges[edit | edit source]
The economy faces several challenges, including high unemployment, a large informal sector, and political instability. Corruption and a complex regulatory environment also hinder economic growth. Efforts to improve the business climate and attract foreign investment are ongoing.
Currency[edit | edit source]
The official currency of Bosnia and Herzegovina is the Bosnia and Herzegovina convertible mark (BAM), which is pegged to the euro.
Related Pages[edit | edit source]
- Bosnia and Herzegovina
- Bosnian War
- Central European Free Trade Agreement
- Stabilisation and Association Agreement
- Economy of Europe
- Human Development Index
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